As 2018 draws to a close, the vast majority of areas have seen rents increase over the past 12 months, according to the latest Landbay Rental Index.
The data, powered by MIAC, shows that rents in the UK have increased by an average of 0.97% year-on-year, led by gains in Edinburgh and Nottingham where rents are growing more than four times faster than the national average.
The most substantial rental growth was recorded in Edinburgh where rents are up 4.63%, followed by Nottingham, Stirling and Leicester, where rents increased by 4.62%, 3.26% and 3.16% respectively.
10 fastest growing areas:
Rank | City | Average rent | Annual Rental Growth |
1 | Edinburgh | £1,073 | 4.63% |
2 | Nottingham | £688 | 4.62% |
3 | Stirling | £796 | 3.26% |
4 | Leicester | £662 | 3.16% |
5 | Inverclyde | £539 | 2.93% |
6 | Conwy | £609 | 2.76% |
7 | York | £785 | 2.73% |
8 | Merthyr Tydfil | £507 | 2.69% |
9 | Bristol | £939 | 2.58% |
10 | Ceredigion | £668 | 2.50% |
13 different parts of the UK have seen rents rise faster than the CPI measure of inflation, which currently stands at 2.3%.
Meanwhile rents have been falling in 20 different areas with Aberdeenshire recording the biggest decline at -7%.
In fact, the bottom five areas are all in Scotland with Aberdeen (-6.23%), Angus (-1.75%), Moray (-1.26%) and South Ayrshire (-0.68%) completing the list.
10 fastest declining areas:
Rank | Location | Average rent | Annual Rental Growth |
1 | Aberdeenshire | £1,360 | -7.00% |
2 | Aberdeen City | £580 | -6.23% |
3 | Angus | £444 | -1.75% |
4 | Moray | £712 | -1.26% |
5 | South Ayrshire | £464 | -0.68% |
6 | Buckinghamshire | £1,166 | -0.47% |
7 | Barnet, London | £1,483 | -0.47% |
8 | Darlington | £417 | -0.46% |
9 | Luton | £775 | -0.39% |
10 | Bracknell Forest | £942 | -0.37% |
Six London boroughs (Barnet, Brent, Enfield, Harrow, Kensington & Chelsea and Hillingdon) have also seen declining rents this year – although, overall, London saw a rise of 0.58%.
John Goodall, CEO and co-founder of Landbay said:“There is no doubt that the private rental sector has seen a geographically varied performance throughout 2018. However, in the context of Brexit uncertainty and recent tax and regulatory changes for landlords, these figures show just how resilient the market continues to be.
“With rental growth standing at 0.97% across the UK, cities like Edinburgh and Nottingham have put in an impressive shift, significantly outperforming London.
“On the face of it the scale of declining rents in Aberdeenshire and Aberdeen may appear concerning, however the reality is that these are exceptions, linked to issues surrounding Scotland’s oil industry.”
Shock as most city landlords say “We’re considering selling”